Dayton Arcade, JK McIntire building win millions in tax credits from state

The Third Street Arcade project will rehab an elaborate facade and two-story, sky-lit arcade into a mix of uses, according to the developer’s application for tax credits.
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The Third Street Arcade project will rehab an elaborate facade and two-story, sky-lit arcade into a mix of uses, according to the developer’s application for tax credits.

The most complicated project in the city of Dayton’s history and a new project by one of downtown’s busiest developers have both won coveted state historic tax credits.

The state of Ohio this morning announced that the Dayton Arcade has been awarded $2.75 million for a nearly $27.6 million rehab of the Third Street Arcade.

The incentives will help fund a second phase of the arcade’s restoration focused on two northern buildings in the nine-building complex.

The Ohio Development Services Agency also awarded almost $1.7 million to the J.K. McIntire building, located at 601 E. Third St. in the Webster Station neighborhood

Water Street developer Woodard Development plans to spend more than $10.4 million to transform the vacant, six-story warehouse into ground-floor retail space and commercial uses on the upper levels.

RELATED: Developer seeks funding for $30M north Arcade project

Three Dayton companies applied for tax credits, and only one was denied entry to the winner’s circle.

The Barclay Building at 137 N. Main St. requested $2.4 million in state historic tax credits to help turn the former home of Miller-Valentine Group into a branded, boutique hotel.

Lydia Mihalik, director of the Ohio Development Services Agency, said the buildings that won awards statewide will create new opportunities for economic growth.

“Preserving the historic charm of Ohio communities enhances the quality of life in our downtowns and neighborhoods,” she said in a prepared statement.

MORE: Planned Dayton boutique hotel, loft apartments seek state tax credits

Thursday’s announcement represents the third time the Dayton Arcade has won state historic tax credits and brings the combined value of its awards to $11.75 million.

The arcade is eligible for multiple awards because it consists of nine different historic buildings. The arcade won $5 million in state historic preservation tax credits in June 2017 and then $4 million more six months later.

The Third Street Arcade project will rehab an elaborate facade and two-story, sky-lit arcade into a mix of uses, according to the developer’s application for tax credits.

The project will create a new kitchen incubator to help local entrepreneurs by providing an educational environment where they can learn to grow their food-related businesses, developers say. The kitchen incubator is expected to open in 2021.

Nearby will be retail and restaurant space where entrepreneurs can test out their concepts.

The north arcade also has office space on three sides of the arcade skylight.

The upper levels of the Third Street Arcade and the Gibbons Annex will have about 32 new apartments, most of which will be “micro units.”

MORE: Urban scholar: Dayton Arcade required ‘capital stack from hell’

The J.K. McIntire building is located in the Dayton Power & Light building group historic district and is the last building of the three on the block to be redeveloped, according to the developer’s application to the state.

The 57,000 square foot building will be turned into retail uses and commercial space aimed at tech companies.

Constructed in 1912 as a grocery warehouse, the building also played an important part of the Manhattan Project since it was used to investigate the element of polonium and the biological affect associated with human contact, the application states.

Technology start-ups Mile Two and Battle Sight Technologies will move into the building, which is being rebranded as the Manhattan, the developer said.

The building is next door to the Avant-Garde, a five-story building that Woodard Development also redeveloped and that is completely leased, with companies including Tangram Flex, JJR Solutions and Business Furniture.

MORE: Historic downtown building to be re-branded The Manhattan